The other day, I read a fantastic article on pricing your services and products. This article was written for women entrepreneurs, but I saw how it could be applied by any kind of entrepreneur, business or non profits. It made me think about all the steps in sales strategy. The first step of course is making sure you have a price figured out for your business, but how do you know if you are charging the right price. For non-profits, how much should you be asking for when asking for a donation?
Getting to a good place with the first step (pricing) of your sales strategy starts with knowing what you are trying to earn and/or how much you want to raise either monthly or annually. Figuring out this simple goal can help you create a very targeted and strategic sales plan....
If it's hard for you to determine an overall goal, look at the expenses in your business or organization and add them up. You should at least be asking or pricing to cover these expenses. Now add in salaries and other benefits and see what that number comes to. Here is your goal!
Now that you have that number, let's say it is $150,000/yr, now you can determine the rest of the sales strategy. In its most basic form, the strategy would be to sell a certain number of units per year to reach this amount. For a non profit, it would be getting a certain number of donation per year. So, if the price of your product or service is $150.00 each, then you need to sell 1000 of these. Of course, not all of us are in the business of selling widgets or units. Also, most of us offer several different kinds of services. Non profits ask for various donation amounts.
If you do have a variety of different services and price levels, then you need to create a list of these services or products and their prices. Then, determine for each service and product, the number of hours, or units, you need to sell annually to reach your total amount. Let's say hypothetically your business offers 1. consulting, 2. a book, and 3. does speaking and workshops. For your consulting service you charge $200/hr and work 20 hours a month which comes to $48,000 annually. Then you have your book priced at $14.95 and you need to sell 5,000 books annually. The total comes to $74,750. The last one is speaking and workshops. Let's say you charge $500 for each speaking opportunity or workshop. Let's say you do 5 of these a month. That comes to $30,000 annually. All of these added up comes to $152,750. That reaches your annual goal. Non profits, do these calculations based on the three different levels of ask, one at $100, $250, and $500. You can also have 5 different ask levels or more if that is the case. I would suggest choosing 3 for your simple sales strategy.
The rule is that you need to get in front of or "touch" with various communications, double or triple the number that you need to actually sell. So, the simple sales strategy is listing out all the ways and places you can communicate to and get in front of your audience to sell or solicit enough to make your annual income goal.
Create this list and start scheduling this into your calendar. Do you need start attending more networking events? Do you need to start scheduling more email blasts, do you need to grow your current mailing list? Do you need to attend more events where you can speak about what you do and the impact you have? Do you need to up your game on social media? If so, start doing it.
With this sales plan in place, you can work strategically rather than shoot from the hip. If you aren't hitting your goals, you will be able to see why exactly and change your plan to get you back on track. That is the beauty of the plan. It allows you to measure and evaluate the work you are doing and how it's doing for you. If you stay on track and do all the things you have planned out, you will start hitting your sales goals.
Do you have a simple sales strategy in place? I want you to share how you determine what sales actions to take each month, every quarter or annually. Leave a comment for me below.
Here's to your Illumination!